JB Hi-Fi Eyeing Expansion

Australasian home entertainment retail giant JB Hi-Fi is targeting new store openings after issuing a buoyant forecast for the second half of its financial year.

The powerhouse music retailer said this week it expects to defy analysts' expectations to report a net profit of $92 million Australian ($75 million) for the year to June 30, 2009, up 41% on the previous year.

The Melbourne-based company forecast revenue of $2.3 billion ($1.87 billion), up 26%, led by strong sales of home electronics products such as computers and plasma TVs. Comparable store sales growth for the 11 months ending May 31 was 10.6%, the company revealed in its profit guidance.

JB Hi-Fi offers a mix of both entertainment software and hardware, along with computer, camera and telephony products. In February, the company announced a group profit of $59 million Australian ($39 million) for the six months ending Dec. 31. Profits were up just over 40% on the back of a 28% increase in sales to $1.26 billion Australian ($840 million).

On account of its strong financial performance, JB Hi-Fi will move forward with a bullish growth strategy, which will see 15 stores added each year to its currently portfolio of 105 outlets servicing Australia and New Zealand.